Correlation Between Stewart Information and Public Storage
Can any of the company-specific risk be diversified away by investing in both Stewart Information and Public Storage at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Stewart Information and Public Storage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stewart Information Services and Public Storage, you can compare the effects of market volatilities on Stewart Information and Public Storage and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Stewart Information with a short position of Public Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stewart Information and Public Storage.
Diversification Opportunities for Stewart Information and Public Storage
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Stewart and Public is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Stewart Information Services and Public Storage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Storage and Stewart Information is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Stewart Information Services are associated (or correlated) with Public Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Storage has no effect on the direction of Stewart Information i.e., Stewart Information and Public Storage go up and down completely randomly.
Pair Corralation between Stewart Information and Public Storage
Assuming the 90 days horizon Stewart Information is expected to generate 1.54 times less return on investment than Public Storage. In addition to that, Stewart Information is 1.24 times more volatile than Public Storage. It trades about 0.07 of its total potential returns per unit of risk. Public Storage is currently generating about 0.14 per unit of volatility. If you would invest 24,798 in Public Storage on August 25, 2024 and sell it today you would earn a total of 6,692 from holding Public Storage or generate 26.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stewart Information Services vs. Public Storage
Performance |
| Timeline |
| Stewart Information |
| Public Storage |
Stewart Information and Public Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stewart Information and Public Storage
The main advantage of trading using opposite Stewart Information and Public Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stewart Information position performs unexpectedly, Public Storage can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Public Storage will offset losses from the drop in Public Storage's long position.| Stewart Information vs. QBE Insurance Group | Stewart Information vs. Insurance Australia Group | Stewart Information vs. Superior Plus Corp | Stewart Information vs. NMI Holdings |
| Public Storage vs. Apollo Medical Holdings | Public Storage vs. Sqs Software Quality | Public Storage vs. VITEC SOFTWARE GROUP | Public Storage vs. CVR Medical Corp |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
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